Swing Trading Definitions
Swing trading means watching for short term price movements, and then taking advantage of these movements by buying low and selling high. This is not day trading – day trading has no reliable data as the period is to short and you cant make money. The stock market trading game can be played many ways, and trades may be undertaken for short or long term goals. A swing trading system will help you find stocks which have the potential for price fluctuations in the near future. When you use this trading strategy you will not hold investments for more than three or four days, and you are looking for short term profits with more trades being performed than long term investors will have.
The right swing trading system for you will be one that is consistent with your investment goals, and the level of risks that you are willing to take. Every investor is different, with different goals and trading methods, so there is not one system which works well for all investors. Look at the swing trading system possibilities, and evaluate each system based on the interface, ease of use, effectiveness, and cost. When you compare all of your choices you can eliminate any choices which are not right for one reason or another. Will the system you are considering help you be a more successful trader, with more profits and fewer losses? Look for systems which are easy for you to use, and that help you find stocks which have the most potential for returns within your specified time range.
Forex swing trading online provides the ideal market for the methodology of swing trading.
So why are currency markets the ideal for swing trading?
Lets first of all define what forex swing trading actually is
Forex Swing trading aims to identify intermediate swings in price, that can last from anywhere from a few days, to a few weeks.
The following conditions make FOREX swing trading potentially such a lucrative way of trading
Each day the global forex markets see trillions of dollars transacted.
This is a 24 hour market and is the world’s biggest investment marketplace.
The huge size of the markets allows traders to open and close transactions quickly, to lock in profits and minimize losses.
Currency markets are volatile and this is why a short term trading method such as forex swing trading can be so profitable.
A volatile moving market is essential for swing trading.
This volatility means a large number of potential opportunities that are presented to forex traders.
Low transaction costs that were once the preserve of large institutions, now any trader can get 3 – 5 pip spreads meaning short term trading is viable for any trader
While currencies present long term trends, there are many profitable swing trading opportunities within them.
These shorter trends last for a few days to a few weeks and they offer regular high reward low risk trading opportunities for forex swing traders
Many traders lack patience and want to have quick action well that’s exactly what you get with forex swing trading.
FOREX swing trading offers them a lot of trades regularly and you don’t need the patience of a long term trend follower.
Swing trades tend to either run to profit quickly or loss, keeping the trader interested, motivated, disciplined and focused.
This is an ideal way of trading for someone who loves trading.
Forex swing trading is also easy to learn you can simply use support and resistance lines with some confirming momentum indicators. For example, we use just stochastics and
RSI – It’s simple and a stress free way of trading and best of all can make big profits with low risk.
FOREX Swing trading is fun and very profitable and that’s the way trading should be.
One moment you decide to trade forex, you need to learn very well about various kinds of forex trading system. It is important so you can decide which system is the most profitable for you. One forex trading system you ought to know is the swing trading system. It is a type of forex trading that enables the trader to take benefits of the fluctuation or swing of currency price over a period of time. But it is also possible for you to trade within the same trading day before the market is closed for the trading day. It is called a day trading system. It is a very popular trading system among casual, at home traders today.
There are actually various kinds of day trading strategies. One of them is the entry strategies. This strategy requires you to enter the ideal candidates for your stock on the day trading. If you use this strategy, you need to understand very well about volatility and liquidity. Both are the basic concepts that will help you in knowing more about how to day trade. If you have no idea about what to do with your stock, you can get a help from swing trading software. You can find many kinds of trading advisor software that can help you in running your forex trading business very well.
One benefit you can get from day trading system is that you can buy and sell so many times on one trading day. It is because day trading focuses on a very-short term trading so it enables your trading lasts in few minutes. Another advantage you can get from day trading system is that you may get trading fee discounts from your broker. It is given to you because of your trading volume. Day trading system gives you a chance to earn money without leaving your home.
My recommendation if you want use best swing strategies only using candlestick reversal patterns which appears at strong support resistance levels that often happened at four hour time frame and daily time frame. Major candlestick reversal patterns that usually appears is doji, engulfing, morning/evening doji stars, marubozu, hammer and shooting stars. Because almost forex indicators are lagging as usually, the key from this candlestick reversal strategies is identify strong support resistances zone from daily or four hour time frame first, then second step is waiting for candlestick reversal patterns formed on this S/R zone, if this candlestick reversal signals didn’t appear or formed, so then market will continue to test last higher high or last lower low, but if candlestick reversal signals appear on this S/R zone and it formed at least on four hour time frame or daily time frame more better so it would be a valid reversal signals and the last step is using the right money management and you’ll stay away from margin call, this is best swing trading system that i’ve found that i still using this support resistance strategy for my living cost.
Just another share about forex analysis using candlestick reversal patterns and combined with supply demand strategy or many traders call as The Candlestick Trading Bible.